Fitbit: Fitness of stock weakens as sales dip

Fitbit shares took a dive Thursday, falling more than 11 per cent, amid concerns that the company’s latest fitness trackers aren’t catching on with consumers.

In a note to investors Wednesday, Brad Erickson, a research analyst at Pacific Crest Securities, warned the new company’s flagship $149.95 Charge 2 is “off to a slow start.”

“Our checks are already finding meaningful inventory accumulation in the channel,” wrote Erickson, who checked with 15 big box retailers in the U.S. to gauge the band’s performance.

“More than two weeks of inventory is on hand and sell-through is below initial Blaze/Alta levels,” Fitbit’s other recent releases from earlier this year.

Fitbit did not immediately respond to a request for comment.

Declining interest and sales is just one of the problems, says Erickson.

He notes that “a large portion of Fitbit owners stop using the device within months, which is a fundamental issue.

The battle for fitness trackers, smartwatches and other wearables continues to intensify ahead of the holiday season. With many of the early wearables being adopted by health buffs, the area is getting particular interest from Apple and Samsung.